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Home My WebLink About05. Approve $1.4 million contingency project for the Recycled Water Clearwell Repairs, DP 7365 Page 1 of 4 Item 5. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: MARCH 1, 2018 SUBJECT: APPROVE A CONTINGENCY PROJECT IN THE AMOUNT OF $1,400,000 FOR THE RECYCLED WATER CLEARWELL REPAIRS, DISTRICT PROJECT 7365; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE A TRANSFER OF $1,400,000 WITHIN THE CAPITAL IMPROVEMENT BUDGET SUBMITTED BY: INITIATING DEPARTMENT: CHATHU ABEYRATHNA, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: CRAIG MIZUTANI, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Board of Directors (Board) authorization is required to include a contingency project in the Capital Improvement Budget (CI B)for an amount that exceeds $100,000. Board authorization is also required to transfer funds above $500,000. BACKGROUND The Clearwell structure, installed in 1975, provides storage and chlorine contact time for recycled water prior to delivery to the treatment plant and Zone 1. The Clearwell is an earthen basin with a sloped bottom that is lined with a propylene liner and separated into two cells by a concrete divider wall. Only the East Cell March 1, 2018 Regular Board Meeting Agenda Packet- Page 46 of 225 Page 2 of 4 is currently in operation. In 1996, a reinforced polypropylene floating cover was added to the East Cell to reduce algae, reduce fecal contamination from birds, and help minimize sodium hypochlorite usage. There is no cover on the West Cell of the Clearwell. Over the last six months, the cover on the East Cell has deteriorated due to failed drains and tears in the cover. In addition, based on a recent dive inspection, portions of the cover are deteriorating from the underside. Leakage on the top of the Clearwell cover and accumulation of water could cause the cover to fail resulting in a failure to meet Title 22 requirements (e.g. increased turbidity). The Comprehensive Wastewater Master Plan and the 2017 Ten-Year Capital Improvement Plan (CI P) recommends a project to replace the Clearwell liner and cover in Fiscal Year(FY) 2023-24 that includes inspection of the Clearwell, replacement of the liners and the East Cell cover, and installation of a new West Cell cover. Staff is proposing to expedite this project to begin this fiscal year and deliver the project in two phases. This project, Phase 1, Recycled Water Clearwell Repairs, will restore the West Cell to operational condition to solve immediate redundancy and reliability issues by dewatering and cleaning the West Cell, including mechanical improvements, and repair of the East Cell cover. Phase 2 will construct the permanent and long-term improvements. Staff is proposing to include Phase 2 of the Recycled Water Clearwell Improvements to the Filter Plant Improvements project already identified in the CI B. Staff is currently soliciting proposals for pre-design and final design for the Filter Plant Improvements. In the meantime, the Phase 1 project needs to be addressed and staff has proposed to bid the Recycled Water Clearwell Repairs (Project), District Project 7365 as soon as possible and return back to the Board with a final project amount at award. C E .A: Staff has concluded that this Project is exempt from the CEQA under Central San's CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The purpose of repairing and commissioning the West Cell is to allow minimal disruption to delivering recycled water.Another alternative would be to shut down the Clearwell to perform any repairs, if possible, and be out of service for several months. Postponing the proposed Phase 1 work could result in an interruption and/or discontinuance of recycled water supply to our customers and the treatment plant. The treatment plant has the ability to operationally use another source of water instead of recycled water, but this is not preferred by Operations. Staff is also evaluating the feasibility of renting temporary equipment, bypassing recycled water, and still meeting permit conditions. FINANCIAL IMPACTS The total estimated cost for this contingency project is $1,400,000, which includes $140,000 for staff time, $975,000 for construction costs, $60,000 for construction management, and $225,000 in contingency. Staff is recommending a 23-percent contingency amount ($225,000) based on the uncertainty of solids disposal costs and for the repairs on the existing East Cell cover. To fund this contingency project, staff plans to bid the Phase 1 project and then transfer the total project costs from the following two projects: March 1, 2018 Regular Board Meeting Agenda Packet- Page 47 of 225 Page 3 of 4 1. Ultraviolet (UV) Disinfection Upgrades, District Project 7352 ($400,000 available). 2. Informational Technology(IT) Development, District Project 8240 ($1,000,000 available). Both projects have been delayed and have budget available this fiscal year. The UV project includes several improvements to improve the reliability of the existing UV disinfection system by replacing various components. The parts associated with the UV project are currently in the procurement stage and delivery is anticipated next fiscal year. The available I T Development project funds were to be used for the Enterprise Resource Planning (ERP) and other IT projects that have not progressed on the same pace as originally anticipated. The ERP and other IT projects are still forecast to occur, but with the bulk of the spending in FY 2018-19 and the following two years.Accordingly, funds will need to be restored to the IT and UV project budgets from other sources, in those years. No future C I B or C I P increase is anticipated as indicated in the following table: Financial Impact Table: Amount ❑ Funds budgeted this FY 2017-18 for this project $ 0 ❑ Funds taken from current FY 2017-18 C I B contingency $ 0 Funds transferred from current FY 2017-18 projects: ❑ a. Updated forecast; estimated savings from project available $ 0 0 b. Acceleration of funds for project that is budgeted in future year $1,400,000 ❑ c. Combined project scope for bidding purposes: $ 0 d. Potential future year budget impact ❑ (May be mitigated through (1) savings from close-outs of current $ 0 year projects; (2) reprioritizing future year projects; (3) cost savings on future year projects) Total Current Year Cost $1,400,000 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the February 20, 2018 meeting. Member McGill recommended Board approval on the project. Chair Causey also supported the project; however, he recommended only 2 of the 3 staff recommendations, stating that he could not recommend Board approval on the transfer of funds in the Capital Improvement Program. Both Members agreed to have this item listed as part of the Board Consent Calendar. Member Causey said that he may make a statement regarding funding at the Board meeting. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Find that the Project is exempt from CEQA; 2. Approve a contingency project for$1,400,000 for the Recycled Water Clearwell Repairs, District Project 7365; and 3. Authorize the General Manager to transfer$1,400,000 within the Capital Improvement Budget. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements March 1, 2018 Regular Board Meeting Agenda Packet- Page 48 of 225 Page 4 of 4 Strategy 1 - Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations GOAL FIVE:Maintain a Reliable Infrastructure Strategy 1 - Manage Assets Optimally Throughout Their Lifecycle March 1, 2018 Regular Board Meeting Agenda Packet- Page 49 of 225